Timber Finance launches CO2 certificates in timber construction

Timber Finance wants to provide building owners and investors in real estate with a tool that allows them to monetize their climate performance in timber buildings through CO2 storage certificates. To this end, the Zurich-based proptech has developed "the world's first recognized methodology", writes Timber Finance in a press release. The company was supported in its development by the Migros Pioneer Fund.

A pilot phase to test the methodology in Switzerland will be launched shortly. Around 20 innovative timber construction projects are to take part. Interested parties can apply online to take part.

In addition to the timber construction projects, a number of Swiss forest districts are also taking part in the pilot phase. They will be remunerated from the certificate proceeds for sustainable forest management. In the coming year, Timber Finance plans to expand the methodology to markets outside Switzerland.

"We have succeeded in developing an instrument that contributes to the decarbonization of the building sector and creates new value in the construction sector by monetizing climate performance," Frank Vasek, Head of Carbon Solutions at Timber Finance, is quoted as saying in the press release. "The proceeds benefit both the construction and forest sectors and thus create an incentive to build more in wood and manage the forest in a climate-relevant way."

The CO2 storage certificates can either be traded on the CO2 markets or offset in the company's own CO2 balance. ce/hs